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As an Intern for SMEI (Sony Music Entertainment Inc.,) there were
many aspects of the Recording industry savored first hand. Those
experiences, combined with Sony's ingenious qualifications allowed an
opportunity to understand what it takes to remain at the top of the
recording industry, not as an individual artist but as a recording
conglomerate.
In 1988 Sony acquired CBS Records, one of the most successful record
empires thus Sony Music Entertainment Incorporated was borne. Sony took
over Columbia and Epic record labels and founded new labels such as
Chaos Recordings and Tristar Music Group. SMEI has gained a lush list
of artist to include The King of Pop Michael Jackson, the sultry Sade,
Pearl jam and the Spin Doctors.
To be on top and remain there as an industry giant, stamina is
required. If your artist does not have staying power, then even the
most touted diva is just whistling Dixie where it counts, in sales.
Barbara Streisand needed a hit, though world renown she was sorely
lacking in the hit department. Executives at Sony decided to pair the
divine diva with new song stress Celine Dion the dynamic duo produced a
hit which is featured on Streisands CD entitled " Higher Ground ".
Streisand is the comeback kid, her new CD has sold 2.5 million copies
in the US, and it is her fastest selling CD to date. The decision to
pair the youthful but soulful sound of Dion with the ageless vocal
enchantress Streisand was no chance mishap. Sony considered Dions
audience and appeal then paired her with Streisand in an effort to
introduce a new audience to Streisand within Dion's core audience. The
two fold tactic was a success. Founding a new audience for Streisand
and establishing legendary status for Dion.
Another one of Sonys' prodigious stars Bob Dylan recently
experienced a comeback of his own with "Time Out Of Mind ". This
masterpiece is Dylan's first original work in the last 8 years. "Time
Out Of Mind" has sold more than 523,000 in the U.S. Sony took a chance
on Dylan, a consummated artist who was thought of by his rivals as a
thundercloud of declination. Sony's savvy and calculated risk, was an
example of top executive Tommy Mottola's shrewd management.
"It doesn't matter who you are, as long as you come out blazing"
says Tommy Mottola in an interview with "The Wall Street Journal"
February 23, 1998. Spending on new artist takes capital . Marketing,
promotions, video's and touring impact the bottom line. Initial cost
for developing artist can reach epic proportions, if the star can
impact sales internationally than the initial investment can be
profitable. Sony is known for taking risk, for example last fall Sony
purchased the soundtrack rights to the "Titanic" for nearly $1million. Of course this calculated risk paid off when
the Soundtrack was the number 1 Soundtrack for six weeks. And sales
have not yet slowed that considerably. On February 17, retailers
requested orders to the tune of 1.3million copies.
Internship with Sony requires an interest in the diversity. There
are many challenging aspects of the recording business. One of them is
the maintenance of Sony's various artists web sites. Sony is on the
leading edge of technology in fact innovators at Sony were one of the
first to drive the music industry towards the Information Super
Highway. Sony's online site interacts with fans to supply them with
information about their favorite artist. The website includes CD
Extras, Shopping Online and electronic distribution.
Sony views the fusion of entertainment and technology as a lucrative
prospect with tremendous growth potential, hence to keep up with the
changing times. Sony has designated a New Technologies Unit, allowing
artist the use of the most extensive genre of expression available
today.
Another territory interns assist in is Advertising and Promotion.
Sony gives away free concert tickets and other promotional products to
market artist. Local radio are given promotional packages to give away,
and many of the entertainers make appearances at the radio stations
most affiliated with their particular target audience. The target
audience is achieved during the Artist and Repetoir portion of the
entertainers development, after a target audience is chosen, the target
market strategy is established.
In the not so distant past, Sony was fifth in the market share of
the six leading record companies. Sony turned things around with a few
delectable deals and is at the midpoint of a successful about face.
Proving once again that down does not mean out and last does not mean
finished.
Many companies could take a tip from Sony's tenacity, perseverance
and stamina. Reaching the top isn't always easy but at Sony it's always
interesting. The higher the stakes the more considerable the investment
and the greater the profit margin. Sony is a company bold enough to
take chances. Recently in Asia were sales are slumping as a result of
the recent recession Sony decided to cultivate Asia's local talent
contemplating long term profitability.
Through clever management, and uncanny diplomacy Sony remains at the helm of the industry.
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